Russian Cryptominers Struggle to Satisfy Western Demand

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Russia and CIS are getting more and more involved in global cryptocurrency operations, as world cryptocurrency agencies are sweepingly moving their operations to those countries to cut the costs of the power.

The mining request is quickly growing due to the rapid growth of the bitcoin rate, which nears $53.000 on Friday.

The Head of the Russian crypto mining company BitRiver, Igor Runets, in an interview with the Kommersant newspaper, informed the media that the company had to advance its energy capacity to satisfy the rapidly growing demand from its American and European partners.

According to him, the company has fully exhausted the capacity of data centers, with reservations made for all of its power units for the next year and a half. During this time, the company is going to share its grounds with foreign agencies, providing them with a total mining capacity of 1 GWh.

BitRiver Company, which is currently the biggest center for Bitcoin mining in the whole Russia and CIS space, does not have enough capacity to meet the foreign demand. In this regard, the company is going to install new data centers in Russia – an 80 MWh facility in Krasnoyarsk and a 300 MWh center in the Republic of Buryatia. The company promises to increase its capacity by 100 MWh by this fall already to satisfy only 50% of its demand.

The BitRiver had said that the changes are conditioned by the fact that the US and European companies are actively moving their operations to Russia and CIS countries from the African countries, China, and Latin America in an attempt to cut the operations costs. the second reason is the continuous cryptocurrency value growth that has been emerging in the past few months. Runets admits that the company already took advantage of this growth back in 2010 when they had to increase the number of their data centers.

Nikita Vassev, who founded the mining market focused TerraCrypto forum popular in CIS-countries, confirms that most of the Western companies are now tending to transfer their tools to Russia and other countries of the post-Soviet space. According to him, this change is not only due to an attempt to decrease the energy costs. The new investment strategy suggests distributing energy evenly across all continents.

According to the Reuters News agency, due to increased rewards for cryptocurrency mining, energy consumption has increased significantly, causing achieving a record high consumption level reached since the end of 2020. The estimated annual consumption stage stays above 75 TWh for the reporting period of time.

At present, the bitcoin mining industry has an available capacity of an average of 9.6 GV, the rate of which is around 67%. As of today, about 50% of the capacity comes to China, 14% to the UAE and only about 8% is registered in Russia.

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